What capital expenditures are required for a Hardees franchisee to renovate and modernize the Franchised Restaurant for renewal?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee shall make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, decor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Hardee's Restaurants at the time Franchisee provides HR the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
- C. Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required: (i) as a condition of renewal, (ii) as a condition of HR issuing its consent to a proposed transfer as defined further in Section 18 below, or (iii) at HR's request (but not more often than every 5 years). Capital expenses necessary for the repair and maintenance of the Franchised Location and modifications required by applicable law or required to abate a hazardous situation are not subject to the time limitations described in the preceding sentence. Within 60 days after receipt of HR's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans, along with a project timeline, for the required modernization. These drawings and plans must be submitted to, and their use approved by, HR prior to the commencement of work. Franchisee shall complete the required modernization within the time reasonably specified by HR in its written notice.
- D. HR has the right, in its sole discretion, to waive, defer or permit variations from the standards of the System or the applicable agreement to any franchisee or prospective franchisee based on the peculiarities of a particular site, existing building configuration or circumstance, density of population, business potential, trade area population or any other condition or circumstance. HR shall have the right, in its sole discretion, to deny any such request HR believes would not be in the best interests of the System.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees' 2025 Franchise Disclosure Document, franchisees must make capital expenditures to renovate and modernize their restaurants to meet the brand's current image standards as a condition of renewal. This includes conforming to the latest interior and exterior designs, decor, color schemes, furnishings, equipment, and presentation of proprietary marks. These renovations may involve structural changes, remodeling, redecoration, and modifications to existing improvements to align with the image of new Hardees restaurants at the time of renewal.
Hardees requires these renovations to ensure that all franchise locations maintain a consistent brand image and meet current customer expectations. The specific requirements for these capital expenditures are determined by Hardees and reflect the standards for new restaurants in the system at the time of renewal. Franchisees are responsible for covering all costs associated with these renovations.
Before starting any renovation work, franchisees must submit detailed drawings and plans, including a project timeline, to Hardees for approval. This must be done within 60 days of receiving written notice from Hardees regarding the required modernization. Hardees will then specify a reasonable timeframe for completing the modernization. However, Hardees retains the right to waive, defer, or permit variations from these standards based on specific site conditions or other circumstances, although any such request can be denied if Hardees believes it is not in the best interest of the Hardees system.